A history of Bitmain, WSJ investigates ShapeShift, and a new Indian exchange
History in the Making: The Story Behind Bitmain Technologies
WSJ investigates ShapeShift’s role in cryptocurrency money laundering
SEC and CFTC charges 1Broker for violating U.S. securities law
“Wouldn’t it be great if you could just take the money that you were going to donate to someone, put it into a hidden form that couldn’t be confiscated and would be invisible to the authorities, and then there’s no longer a death tax?” Erik Voorhees, CEO ShapeShift
The Big Block
Nothing strikes more fear into the hearts of those in the crypto community than the news of Bitmain Technologies taking an interest in their projects. The firm, often just called Bitmain, is by far the most dominant crypto-mining manufacturer in the young industry. Most recent estimates suggest that Bitmain owns 74.5% of the market for application specific integrated circuit (ASIC)-based cryptocurrency mining hardware — a market that is growing at a compound annual growth rate of ~195%. It is no surprise then just the thought of Bitmain creating ASIC miners for cryptocurrency projects could induce anxiety for developers. Bitmain’s entry into different projects often forces core developers to hard fork their blockchains — literally breaking them in two — to prevent the mining giant from monopolizing the mining process.
While Bitmain plays a vital role in the current crypto ecosystem, its dominance was never a sure thing. The company struggled through multiple challenges that could have caused it to shut down for good. This is the story of how Bitmain pioneered an entirely new industry and the risks it took to get there.
Read More on The Block (7 Minutes)
Around The Block
SEC and CFTC charges 1Broker for violating U.S. securities law
The two government agencies charged 1Broker, along with its CEO Patrick Brunner, for selling security-based swaps to U.S. and international investors without meeting the “discretionary investment thresholds required by the federal securities laws.” — More
WSJ investigates ShapeShift’s role in cryptocurrency money laundering
The Wall Street Journal tracked funds from over 2,500 suspected crimes that used bitcoin and ether, identifying ~$90M laundered through 46 cryptocurrency exchanges. The top five exchanges, by laundered funds received, includes Binance, Bitfinex, ShapeShift, BTC-e, and Bittrex. — More
Indian cryptocurrency exchange stops trading — More
U.S. House passes bill for crypto-terror task force — More
15 U.S. Lawmakers ask SEC for clarity on ICOs and digital tokens — More
The Block Events
It’s official! The Block has inked our deal with WeWork and we are kicking off our co-working and event space at 11 Park Place starting October 1st! Send all hosting inquiries to events@theblockcrypto.com.
October 3-4 – CryptoSprings (Palm Springs, CA)
October 4 – Blockchain in Healthcare presented by HoneyComb Health (New York)
October 4 – Global Blockchain Forum (San Francisco); The Block community receives 50% off tickets through the link
October 4-5 – FinnoSummit Miami; Kelcey Gosserand, GM, and Head of Community is delivering a keynote and leading a fireside chat with Manuel Beaudroit, Chief Marketing Officer at Bitex.la
October 9 – Blockchain Back to School Special, Ep 2: The History of Money (New York)
October 10 – Digital Assets for Family Offices & Fund Managers (New York); The Block community receives 30% off using the promo code THEBLOCK
October 25 – Bringing Cities on to the Blockchain presented by Blockfinity (New York)
October 26 – What is Real? Authenticity, Transparency, and Trust in the Digital Age of Fashion (New York); Kelcey Gosserand, GM, and Head of Community is participating in the Tech Talk panel: Blockchain and the Future of Fashion with Cathy Yoon, General Counsel at Genesis Block and Samantha Radocchia, C0-founder at Chronicled
October 26 – Argentina’s Crypto Scene presented by Bitex (New York)
November 14 – The Future of Logistics Technology Summit (Miami); The Block community receives 20% off using the promo code BLOCK20